Digital transformation is a hot topic--but what exactly is it and what does it mean for companies? In this course, we talk about digital transformation in two ways. First we discuss the pace of change and the imperative it creates for businesses. Next we provide the context for this transformation and what it takes to win in the digital age. Then we walk through BCG's proprietary framework, which helps you identify key areas to digitize, including strategy, core processes, and technology.
By the end of this course, you'll be able to:
--describe the underlying economics of innovation, technology, and market disruptions
--weigh the pros and cons of current digital technologies driving advancement
--utilize BCG's digital transformation framework as a ""how-to"" for digitizing your organization

SS

The course material is fantastic and was delivered capably by the instructors. the interviews with the experts were value adds and provided good insights into the application of the concepts.

IS

Jul 15, 2018

Filled StarFilled StarFilled StarFilled StarFilled Star

Really good well structured course with both relevant and very interesting content. I would highly recommend this course to anyone who would like to learn more about Digital Transformation.

Na lição

The Mechanics of Disruption

Disruption is not new, and we can learn from the past how to thrive given the constant disruptions that are the hallmark of the digital age. This week, we will explore the foundations of digital transformation and the nature of the competitive life cycle. We will look at the underlying economics of innovation and technological change. Finally we will explore incumbency and the economics of innovation through the lens of digital transformation.

Ministrado por

Michael Lenox

Amane Dannouni

Principal at Boston Consulting Group, Singapore

Sonja Rueger

Project Leader, Boston Consulting Group

Ching Fong Ong

Senior Partner and Managing Director, Boston Consulting Group

Transcrição

Given the importance of competitive life cycles to understanding digital transformation, I'd like to provide you with some tools, some ways of mapping competitive life cycles for your business. In my book, The Strategies Toolkit, I provided the following little diagram as a way to think through where you're positioned on various products within the competitive life cycle. Rather than representing it as a series of graphs, here, we represented it as a circle, recognizing the fact that, often, we see renewal and the process begin again as new technologies and disruptions enter the marketplace here. We see our three phases, emerging phase, growth phase, mature phase, and we see our transition points of annealing, shakeout, and disruption. And overall, we're really interested in how quickly does this process take. How speedy is this competitive life cycle for our particular industry? So let's give an example. Here we have Apple. In particular, Apple circa 2011. In 2011, they had just recently offered the iPad. One could argue that the iPad was still in the emerging phase. Maybe we're still trying to figure out exactly what that form factor is going to look like. The iPhone had been offered a few years before. That was more in the growth phase. We're really now sort of coalesced on what a smartphone looked like, we were in the high growth phase part of the market. We had the iPad which was entering in a more mature phase at this point here. Shakeout had occurred, dominant player in the iPad, but now, growth was starting to decline and we were entering that mature phase of competition. And even more mature, we had the Mac product, one that had been around for decades and arguably towards the end of its life cycle as a form factor. Once again, we can now map out all four of these businesses simultaneously, get a sense of where they are. Some questions we'd want to ask. First, how long are each of these phases? Do we expect the mature phase to be decades long or is this just going to be a matter of a few years? How long is that emerging phase? Is the iPad going to be something that will be emerging for a few years or will it be relatively quick? And again, we can work through each of these different phases. Overall, we might ask, is this a slowly evolving industry, one that might be relatively stable for decades or is this maybe on the other extreme what we might refer to as a hyper dynamic industry, where every 18 months or so, new things are coming to market and transforming the marketplace? We also want to think about the severity of each of these transitions. Are the disruptions more radical in nature or more incremental in nature? When we think about the annealing process here, do we imagine one single dominant design or will there potentially multiple competing designs that can still coexist within the marketplace? When we think of shakeout, is this a winner-take-all market? Is this one of these industries again where we're just going to see one single winner or is this something that's going to be maybe a duopoly or an oligopoly, a small number of competitors? Is this rather going to be a contested market where we have lots of different competitors working to try to be dominant within the marketplace? And overall, we want to think through these questions about, are there first mover advantages? Does timing matter here? Can we wait and be patient and have a second mover opportunity? So again, as we think through this competitive life cycle, it allows us to create a portfolio of understanding of the various products in the market. One could take Apple in 2011 and advance it to 2017. What would we see? Well, most of these technologies now would be moving into the mature phase. That could mean that new disruptions could be coming around, the bend that Apple needs to be aware of and maybe investing in, the next technology that will disrupt the marketplace.